The Race to Making Tax Digital appears to have slowed down due to the Government “listening to concerns” raised by the Treasury Select Committee, business owners and accountants.

The government has unveiled a new timetable for Making Tax Digital that now requires only businesses with a turnover above the VAT threshold (currently £85,000) to keep digital records and provide quarterly updates to HRMC for VAT purposes from April 2019. Businesses will not be required to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.

Although fully committed to the implementation of a digital landscape the government has accepted that smaller businesses with limited resources need more time for the transition.
This will give breathing space for the 3 million small businesses and landlords who were struggling to meet the original timescale. The extra time will mean that they will be able to make the switch to digital at their own pace before it becomes mandatory in 2 years.

If you are yet to consider how you will comply with the digital requirement then please talk to us. Recording accounting transactions in a digital format is straightforward using our online accounting service. Our online accountancy software complies with HM Revenue & Customs systems. With our help and assistance and ongoing support complying with the new requirements will be a walk in the park.

For more information about our online accounting please contact us.